On 11 September 2025, the UK Financial Conduct Authority (FCA) published a web page and shared examples of best practice and areas for improvement for applicants for regulatory authorisation/registration in the UK.
Although not directly applicable to applicants seeking authorisation or registration in Ireland from the Central Bank of Ireland (Central Bank), the principles outlined by the FCA merit consideration as they are based on the experience of another credible regulator in its assessment of applications for regulatory authorisation/registration. We have translated the FCA's feedback into a list of do's and don'ts for applicant firms.
1. Staff with appropriate skills, experience and capacity to provide the financial service(s)
Do
- Share the firm's own suitability assessment of approved persons, where possible.
- Provide clear ownership structure charts identifying the firm's controllers.
- Identify gaps in staff resources, explaining how they will be filled and over what timeframe.
- Explain the rationale behind staff incentives to show how these will drive good customer outcomes, rather than only driving sales volume.
- Demonstrate how individuals with multiple responsibilities will allocate their time to fulfil their roles competently.
- Be prepared to engage directly (rather than overly rely on third parties) in relation to the application.
- Demonstrate a meaningful commitment to doing business in the jurisdiction.
Don't
- Overly rely on compliance consultants, rendering the firm unable to demonstrate a sufficient understanding of regulatory obligations without the consultant's support.
- Be unable to evidence staff eligibility to work in the jurisdiction or provide addresses supporting an assertion that the business will be based in the jurisdiction.
2. Robust policies documenting the firm's processes and procedures
Do
- Demonstrate how the firm's systems and controls are appropriate for the nature and scale of the business and how they will deliver good customer outcomes.
- Use the FCA's sample business plan to ensure key information is included.
- Provide a detailed analysis of why the firm needs each permission applied for.
- Incorporate the UK consumer duty into the firm's policies, procedures, systems and controls, ensuring all likely customer scenarios are considered (rather than merely repeating the FCA's expectations regarding the Consumer Duty in a separate document). Note: Although the Consumer Protection Code in Ireland differs from the UK's Consumer Duty in many respects, the Irish Consumer Protection Code applies to regulated firms providing regulated activities to individuals and in-scope small businesses within Ireland. In-scope applicant firms in Ireland must not fail to consider the Consumer Protection Code, where relevant, in the context of any applicable regulated activities. For further information on imminent changes to the Consumer Protection Code please see here.
- Tailor the firm's policies to its specific business and focus on documenting how the firm plans to comply with the FCA rules within its own setting.
- Ensure the firm's policies address the risks its business model exposes customers to, especially when considering compliance monitoring arrangements.
- Identify the use of off-the-shelf, modified or custom systems. The timelines and project plans for the intended technology should be clear and realistic.
Don't
- Merely repeat the FCA's rules within the firm's policies, rather than focus on documenting how the firm intends to comply with those rules within its own setting.
- Focus on the risks to the firm, rather than the risks that the business model exposes the firm's customers to, especially when considering compliance monitoring arrangements.
- Prepare/submit policies that are not aligned and do not make sense when considered together. Regulators want to join the dots to gain an understanding of how the firm will apply the policies on a day-to-day basis.
- Provide unclear information on planned IT systems and infrastructure.
3. Financial resources appropriate for the nature and scale of the business
Do
- Use the FCA's financial analysis templates to present forecast information, with accompanying notes and assumptions.
- Provide evidence of funding arrangements and highlight the funding commitments and relevant contingency plans.
- Consider the applicable financial requirements and supply all information required.
- Demonstrate the firm's ability to meet relevant prudential requirements.
Don't
- Fail to submit historic financial accounts as part of the initial application, which delays the assessment.
- Submit inaccurate information that hinders the assessment and creates additional information requests.
- Fail to consider applicable rules and supply all relevant information.
For further information on UK authorisation requirements please see the FCA webpage.
For more details on the Central Bank's cross sectoral guidance for firms seeking authorisation in Ireland please see here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
